Walgreens to Close 1,200 Retail Stores

Walgreens Boots Alliance plans to close 1,200 stores during the next three years, with 500 closures set for next year.

The pharmacy giant which is based in Deerfield, Illinois, said it would shutter roughly 14% of its U.S. locations and redeploy the majority of the workers impacted, amid low drug reimbursement rates and slower consumer spending. 

The store closures, or “footprint optimization” strategy, is focused on re-orienting the company as a retail pharmacy. For fiscal year 2025, the company will focus on the growth of core lines of business, including the pharmacies and specialty pharmacy services.

During the company’s recent earnings call, Walgreens indicated that the struggling retailer is taking steps to cut expenses and has reduced net debt by $1.9 billion. “Building on this momentum is critical as we turn our executional focus to stabilizing our core economics,” said CEO Tim Wentworth.